City business nightmare
Threats to tighten opening hours in bars and restaurants could have a devastating effect on the night-time economy of New Zealand’s top cities, say hospitality chiefs.
Auckland’s economy is at risk if police win an appeal to bring in restrictive policies on bars and bottle shops, Hospitality New Zealand’s Auckland president, Russell Gray says.
And Wellington organisations too are continuing to oppose police moves to impose a Sydneystyle lock-out policy in central Wellington bars.
Police are building a case for a six-year ban on all new bars and liquor shops in Auckland’s CBD, as well as a 1am one-way door policy and 3am closing time, to try and curb alcohol-related violence on the city’s streets.
It is part of an appeal the police, supermarkets, the Medical Officer of Health and others are launching against Auckland’s provisional local alcohol policy, which allows licensed bars in Auckland’s CBD to open until 4am.
Russell Gray says the proposed measures pushed by police would have a significant, negative impact on Auckland’s ‘‘night time economy’’ and put a dampener on business from tourists.
According to the Ministry of Business, Innovation and Employment, almost 22 per cent of international visitor expenditure in Auckland is spent on food and beverage.
In July alone, international tourists spent $215 million in Auckland, while domestic tourists spent $271m.
‘‘Auckland is becoming an international city. It’s priding itself on being the show that never stops, but it’s in danger of becoming the city that went to sleep if the police win,’’ Gray says.
John Hellebrekers is the managing director of Barworks Hospitality Group, which owns popular CBD bars Degree, Sweat Shop and Crew Club.
He says if police get their way, his company’s central city venues would suffer considerably in terms of turnover and employment.
Overall, Auckland would have a ‘‘dead energy’’ in the city and it would not be the ‘‘vibrant and liveable city we want’’.
In Wellington, police are attempting to introduce a similar lock-out policy to Sydney.
In 2014 the New South Wales government introduced new laws that shut down Sydney’s clubs to new guests at 1.30am and banned the sale of alcoholic drinks after 3am.
The state’s crime statistician found the laws led to a 40 per cent reduction in assaults across Sydney’s CBD, but the hospitality industry has complained that night-time foot traffic has dropped by about 80 per cent in popular districts Kings Cross and Oxford St, and more than 40 nightlife venues have closed.
In Christchurch, there is a provisional local alcohol policy waiting to be heard by the licensing authority; the policy proposes a reduction of hours in suburban venues from 3am to 1am and a one-way door policy.
Hospitality NZ central South Island regional manager Amy McLellan-Minty says the proposed policy would absolutely result in businesses shutting down and there are already offshore property investors who are reconsidering building in Christchurch because of the possibility of heavier regulations coming into force.
‘‘Those people who lost their licensed premises in the CBD after the earthquake, have taken it upon themselves to reinvest and open up outside of the CBD, so they’ve made a huge financial investment. And they did it on the model of being able to trade until 3am.’’
In Queenstown there is no local alcohol policy in place and most bars close at 2am.
Downtown Queenstown general manager Steve Wilde says Queenstown has a reputation as a party town.
‘‘We want people to come here and have a great time. A part of that is being able to go out and have a few drinks.’’
But he says they also have a responsibility to provide a safe environment.
Wilde says the highly competitive market means there are no second chances for business owners who don’t play by the rules.
(Sunday Business approached New Zealand Police for comment, but received no response before going to press.)